1
answer
0
watching
219
views

Given following Price and Total Cost functions:

P = 120 - 7Q

TC = 40 + 70Q - 10Q2 + 0.6Q3

Where P = price, and Q is output.

Fill in the table below and answer the questions below the table.

Q

P

FC

TVC

TC

TR

Profit

0

           

1

           

2

           

3

           

4

           

5

           

6

           

7

           

8

           

9

           

10

           

If your company's goal is to maximize profit, answer the following questions below:

What price will you charge for your product?

What quantity will you produce?

And what would be your maximum profit or minimum loss at the price and output you chose?

2. If your company's goal is to maximize total revenue, answer the following questions below:

What price will you charge for your product?

What quantity will you produce?

And what would be your maximum total revenue at the price and output you chose? (3 points)

Question 3

Given a firm with the following cost data, fill in the table below.

Q = OUTPUT TFC = Total Fixed Cost AVC = Average Variable Cost ATC = Average Total Cost TVC = Total Variable Cost MC = Marginal Cost TC = Total Cost

 

Q

FC

TVC

TC

AVC

ATC

MC

0

     

---

---

---

1

         

10

2

           

3

     

10

 

10

4

           

For unlimited access to Homework Help, a Homework+ subscription is required.

Darryn D'Souza
Darryn D'SouzaLv10
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in

Related textbook solutions

Weekly leaderboard

Start filling in the gaps now
Log in